Into European trading and the Asian consolidation of the move lower kept the 1.2500 option barriers in focus early-on. However, central bank and sovereign bids as well as option protection have again been discussed to leave the downside looking thick below 1.2520. Sub-1.2500 stops might be the goal for some bears but with the downside looking limited the price was soon forced higher. Offers from 1.2540 back to 1.2550 were eventually absorbed but the pair failed to break above the 1.2555 bull trigger.
As a result, the stops (slated to be around 1.2560) have remained intact as spot builds a 1.2525/55 comfort-zone ahead of the North American open. Add to the mixture the large 1.2550 expiry set for the NY cut-off at 14:00 GMT and the late European action has seen the pair pivot 1.2550 despite the decent headline EZ
data. More sellers are seen camped at 1.2565 with better size into 1.2575/80. Looking ahead, having seen few fireworks from the Fed"s Bies the attention has now turned to the FOMC Minutes set for unveiling at 18:00 GMT, where the state of mind from the September 20th meeting will be under the microscope.
No comments:
Post a Comment